This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

For Abbott, Diversity Remains Paramount

Early research said they did a better job than uncoated stents. But recent clinical trial data shows "unclear benefits" of drug-coated stents vs. uncoated stents and other cardiac treatments, says a Morningstar report.

As a result, the drug-coated stent market was hit hard, and The New York Times reported last year that U.S. sales dropped by nearly 40% in 2007. Morningstar's Conover says the business is starting to stabilize. Based on clinical trial data, "Xience can gain a good chunk of the market, even though the pie is smaller," he says.

The question is how well can Abbott do in a crowded market. J&J and Boston Scientific (BSX - Get Report) are long-time players. Medtronic (MDT - Get Report) joined in February.

Abbott, which began marketing Xience V in Europe almost two years ago, also is competing at home and abroad with an identical stent from Boston Scientific. The Promus stent was approved by the FDA in July.

Xience was developed by Guidant, but when Boston Scientific acquired this device-maker, Abbott bought Guidant's vascular products business to help the deal to pass U.S. antitrust review. Abbott also stopped work on a homegrown stent, Zomaxx, because Xience was better.

5 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ABT $45.89 -0.95%
BSX $17.65 -0.56%
GE $24.84 0.12%
JNJ $99.15 -1.44%
MDT $76.14 -2.37%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs